Chainlink’s [LINK] breakout from its prolonged descending channel has been solidified, indicating a significant shift in momentum. This breakout follows a period of consolidation and bearish pressure, hinting at a potential reversal in the prevailing trend.
Currently, LINK is trading at $14.97, showing a 2.77% increase in the past 24 hours, while boasting a market capitalization of $9.39 billion.
The trading volume has spiked by 86.04% to reach $981.98 million, demonstrating a heightened level of market involvement. As LINK tests the $15 resistance level, indications point towards a potential surge towards the $23 target.
LINK Retesting Crucial Levels with Strong Bullish Momentum
The retesting of the $15 resistance level, a pivotal price range, further bolsters LINK’s bullish breakout. This level, currently acting as a launching pad, has the potential to drive the token up by 53%, targeting the $23 resistance.
Throughout history, breakouts of this nature have often led to prolonged rallies, and the retest at $15 acts as a robust confirmation signal. Traders are closely monitoring whether LINK can sustainably consolidate above this level in the upcoming sessions.
Various momentum indicators are offering additional bullish signals. The MACD is exhibiting an expanding gap between the MACD and signal lines, accompanied by a rising histogram of green bars, suggesting a gradual increase in buying pressure.
Furthermore, a Fibonacci retracement from prior lows to the recent breakout identifies the $23 level as a critical resistance area, underscoring its significance in the broader price trajectory.
LINK On-Chain Activity Strengthens Positive Outlook
On-chain metrics further reinforce the optimistic outlook. The number of active addresses has risen by 1.24% in the last 24 hours, indicating an increased level of interaction with the Chainlink network.
Moreover, transaction counts have climbed by 1.76% to reach 13,065 in the same timeframe. These upticks in activity suggest heightened network utilization, often correlating with price uptrends.
Liquidation Data Reflects Bullish Sentiment
Liquidation data reveals a prevailing bullish sentiment among traders, with long liquidations amounting to $67.61K, substantially surpassing short liquidations totaling $10.63K, indicating robust market confidence.
This imbalance suggests that traders anticipate further price growth, adding an additional layer of positivity to the current market sentiment.
In conclusion, Chainlink’s breakout from the descending channel, alongside a successful retest of $15, indicates that LINK is well-positioned to achieve the $23 target. With robust technical indicators, increasing on-chain activity, and bullish liquidation data, the rally seems sustainable. As a result, LINK is likely to reach $23 in the short term, provided it maintains consolidation above $15.